Bybit Exits NFT Marketplace Amidst Market Turmoil

Cryptocurrency exchange Bybit has announced the closure of its NFT marketplace, Inscription Marketplace, effective April 8, 2025. This decision reflects a broader trend in the NFT sector, where interest and trading volumes have significantly declined over the past two years, prompting several platforms to exit the space.

Key Takeaways

• Bybit will shut down its NFT marketplace and IDO product pages on April 8, 2025.

• NFT trading volumes have plummeted over 95% since their peak in 2021.

• Total NFT sales in Q1 2025 fell 63% year-over-year to $1.5 billion.

• Other platforms like Kraken and X2Y2 have also ceased NFT operations recently.

The Decline of the NFT Market

The NFT market has experienced a dramatic downturn, with trading volumes collapsing from their peak levels in 2021. According to blockchain analytics firm DappRadar, the number of active wallets engaging in NFT trades has dropped from over 500,000 to fewer than 20,000 as of 2025. This decline has been attributed to waning institutional interest and a general market retreat.

In the first quarter of 2025, total NFT sales reached only $1.5 billion, a stark contrast to the $4.1 billion recorded during the same period in 2024. March alone saw a staggering 76% drop in sales compared to the previous year.

Bybit's Strategic Shift

Bybit's decision to close its NFT marketplace is part of a strategy to streamline its offerings and enhance user experience. The exchange has advised users to transfer their assets from their web3 wallets before the shutdown date. This move follows a significant security breach in February 2025, where hackers linked to North Korea stole approximately $1.4 billion in digital assets from the platform.

Industry-Wide Closures

Bybit is not alone in its exit from the NFT space. Other notable platforms have also announced closures:

• X2Y2: Recently confirmed it would cease operations due to a significant decline in trading volume.

• Kraken: Closed its NFT marketplace in February, reallocating resources to new products.

• LG Electronics: Announced plans to shut down its NFT platform, LG Art Lab, by June 2025.

These closures highlight a growing trend among companies in the crypto space to pivot away from NFTs as the market struggles to regain its footing.

The Future of NFTs

Despite the overall market collapse, a few projects have managed to maintain interest. For instance, collections like Pudgy Penguins and Doodles have seen sales increases, attributed to strategic partnerships and community engagement. However, these success stories are exceptions in a market that has largely failed to sustain the widespread appeal it once enjoyed.

The NFT sector, once heralded as the future of digital ownership, now faces significant challenges. As platforms like Bybit exit the space, the future of NFTs remains uncertain, with many questioning whether the market can recover from its current state.

Sources

• Bybit Closes NFT Marketplace as Interest Drops – The Shib Daily, The Shib Daily.

• Bybit shuts doors on NFT marketplace as interest wanes, CryptoSlate.

• Another One Bites the Dust: Bybit to Shut Down NFT Marketplace as Trading Volumes Fall 95%, CoinCentral.

• ByBit Halts Operations Of Its NFT Platform, Inscription Marketplace, TronWeekly.

• Bybit shutters NFT marketplace as institutional faith dwindles amid broad market decline, The Block.